### Forever 21 to Wind Down U.S. Operations Amid Second Bankruptcy Filing
Los Angeles-based fast fashion retailer F21 Opco, the licensee of Forever 21 in the U.S., has announced plans to wind down its U.S. business while exploring a potential sale or restructuring of its assets. The company has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware, marking its second such filing in six years.
“While we have evaluated all options to best position the company for the future, we have been unable to find a sustainable path forward, given competition from foreign fast fashion companies, which have leveraged the de minimis exemption to undercut our pricing and margins,” said F21 OpCo CFO Brad Sell. “Additionally, rising costs, economic challenges impacting our core customers, and evolving consumer trends have further complicated our ability to continue operating.”
Despite the bankruptcy proceedings, all Forever 21 stores in the U.S. will remain open for the time being. If a successful sale occurs, the company may shift its strategy from a full wind-down to a going-concern transaction.
The Chapter 11 filing does not impact Forever 21 stores outside the U.S., as those locations are operated by independent licensees.
